Steps on How to Compute your Salary during Regular Holidays and Special (Non-Working) Days?

Steps on How to Compute your Salary during Regular Holidays and Special (Non-Working) Days?

For those Filipino employees who are working even during Regular Holidays or Special (Non-Working) Days should make sure to receive an accurate payment of wages. Check if your company uses the correct formula mandated by the Department of Labor and Employment.

According to the Labor and Employment Secretary Silvestre H. Bello III, Non-payment of holiday pay is one of the most common concerns brought by workers to the Department. If employers will follow prescribed guidelines and observe fair labor practices, then workers will have no reason to complain because their rights at work are respected.

Great thing that this article will show a simplified illustration of proper computation of wages to the workers during Regular Holidays and Special (Non-Working) Days based on the Department of Labor and Employment (DOLE) pay rules.

For example:

  • Employee: Z
  • Daily Rate/Basic Wage: P335
  • Cost Of Living Allowance (COLA): P5
  • Hourly Basic Rate: P41.875

The Implemented Pay Rules mandated by DOLE with the following condition:

REGULAR HOLIDAYS

These are the remaining Regular Holidays for 2017

  • Monday -August 28, 2017 – National Heroes Day
  • Friday-September 1, 2017 – Eid Al-Adha
  • Thursday- November 30, 2017- Bonifcio Day
  • Monday- December 25, 2017- Christmas Day
  • Saturday- December 30, 2017-Rizal Day
  1. If the employee did not work, he/she shall be paid 100 percent of his/her salary for that day. The COLA is included in the computation of holiday pay. Sample computation: [(Daily rate + COLA) x 100 percent];

ILLUSTRATION: Employee Z DID NOT WORK

Formula: [(Daily Rate + COLA) x 1]

Computation: [(335+5) x 1]

Z Salary: Php.340.00

  1. If the employee worked, he/she shall be paid 200 percent of his/her regular salary for that day for the first eight hours. The COLA is also included in the computation of holiday pay. Sample computation: [(Daily rate + COLA) x 200 percent].

ILLUSTRATION: Employee Z DID WORK

Formula: [(Daily Rate + COLA) x 2]

Computation: [(335+5) x 2]

Z Salary: Php680.00

  1. If the employee worked in excess of eight hours (overtime work), he/she shall be paid an additional 30 percent of his/her hourly rate on said day. Sample computation: [Hourly rate of the basic daily wage x 200 percent x 130 percent x number of hours worked];

ILLUSTRATION: Employee Z OVER TIME WORK for additional 4 hrs.

Formula: [(Daily Rate + COLA) x 2] + (Basic Hourly Rate x No. of excess hrs. x 2.6)

Computation: [(335+5) x 2] + (41.875 x 4 x2.6)] = (680+435.50)

Z Salary: Php1, 115.50

  1. If the employee worked during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30 percent of his/her daily rate of 200 percent. Sample computation: [(Daily rate + COLA) x 200 percent] + (30 percent [Daily rate x 200 percent)];

ILLUSTRATION: Employee Z WORKED ON A REST DAY

Formula: [(Daily Rate + COLA) x 2] + [(Daily Rate x 2) x .30]

Computation: [(335+5) x 2] + [(335 x 2) x.30]

= (680) + [(670) x.30]

= (680+201)

Z Salary: Php881.00

  1. If the employee worked in excess of eight hours (overtime work) during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30 percent of his/her hourly rate on said day. Sample computation: (Hourly rate of the basic daily wage x 200 percent x 130 percent x 130 percent x number of hours worked)

Disclaimer:

To all the readers of this website Thebrightinvestor.com, please read carefully and understand this disclaimer before you use or implement all the contents found here. Some of the posts are risky to use if you are a beginner.

All the post and contents of this website Thebrightinvestor.com is for public information only, however we cannot guarantee the accuracy, completeness, or the assurance that will work for you if you implement some of the tutorials posted on this website. We are working to the best of our skills to make this website updated and working, but due to the fact that every seconds there some updates taking place on the World Wide Web it’s out of our control if some of the contents here will not work. Read More....

Related Articles